Compute tax
This query is : Resolved
27 August 2018
A has pension income 342000And salary 380000Pf 60000Compute tax ??
27 August 2018
Please mention the following details
1. Assessment year
2. Assesses is male/female/senior citizen
3. Residential Status
1. Assessment year
2. Assesses is male/female/senior citizen
3. Residential Status
20 July 2024
To compute the income tax liability for A for Assessment Year 2018-19 (Financial Year 2017-18), we will calculate based on the income details provided:
### Income Details:
- Pension Income: Rs. 3,42,000
- Salary Income: Rs. 3,80,000
- PF Contribution: Rs. 60,000
### Step-by-Step Computation:
1. **Calculate Gross Total Income (GTI):**
Gross Total Income = Pension Income + Salary Income
Gross Total Income = Rs. 7,22,000
2. **Calculate Deductions under Section 80C:**
- PF Contribution: Rs. 60,000 (Assuming it is within the limit of Rs. 1,50,000 allowed under Section 80C)
3. **Net Taxable Income (After Deductions):**
Net Taxable Income = Gross Total Income - Deductions under Section 80C
Net Taxable Income = Rs. 6,62,000
5. **Tax Calculation:**
- Tax on income from Rs. 2.50L to Rs. 5L
= 5% of (Rs. 6.62L - Rs. 2.50L)
= 5% of Rs. 4,12,000
= Rs. 20,600
- Tax on income from Rs. 5L to Rs. 6.62L
= 20% of Rs. 1,62,000
= Rs. 32,400
6. **Total Tax Liability:**
Total Tax Liability = Tax on income from Rs. 2.50L to Rs. 5L + Tax on income from Rs. 5L to Rs. 6.62L
Total Tax Liability = Rs. 20,600 + Rs. 32,400
Total Tax Liability = Rs. 53,000
### Summary:
- **Gross Total Income:** Rs. 7,22,000
- **Deductions under Section 80C:** Rs. 60,000
- **Net Taxable Income:** Rs. 6,62,000
- **Income Tax Liability:** Rs. 53,000
This computation assumes that the PF contribution of Rs. 60,000 is within the permissible limit under Section 80C and that no other deductions or exemptions apply. For accurate tax computation and advice tailored to individual circumstances, it's recommended to consult with a qualified tax professional or chartered accountant.
### Income Details:
- Pension Income: Rs. 3,42,000
- Salary Income: Rs. 3,80,000
- PF Contribution: Rs. 60,000
### Step-by-Step Computation:
1. **Calculate Gross Total Income (GTI):**
Gross Total Income = Pension Income + Salary Income
Gross Total Income = Rs. 7,22,000
2. **Calculate Deductions under Section 80C:**
- PF Contribution: Rs. 60,000 (Assuming it is within the limit of Rs. 1,50,000 allowed under Section 80C)
3. **Net Taxable Income (After Deductions):**
Net Taxable Income = Gross Total Income - Deductions under Section 80C
Net Taxable Income = Rs. 6,62,000
5. **Tax Calculation:**
- Tax on income from Rs. 2.50L to Rs. 5L
= 5% of (Rs. 6.62L - Rs. 2.50L)
= 5% of Rs. 4,12,000
= Rs. 20,600
- Tax on income from Rs. 5L to Rs. 6.62L
= 20% of Rs. 1,62,000
= Rs. 32,400
6. **Total Tax Liability:**
Total Tax Liability = Tax on income from Rs. 2.50L to Rs. 5L + Tax on income from Rs. 5L to Rs. 6.62L
Total Tax Liability = Rs. 20,600 + Rs. 32,400
Total Tax Liability = Rs. 53,000
### Summary:
- **Gross Total Income:** Rs. 7,22,000
- **Deductions under Section 80C:** Rs. 60,000
- **Net Taxable Income:** Rs. 6,62,000
- **Income Tax Liability:** Rs. 53,000
This computation assumes that the PF contribution of Rs. 60,000 is within the permissible limit under Section 80C and that no other deductions or exemptions apply. For accurate tax computation and advice tailored to individual circumstances, it's recommended to consult with a qualified tax professional or chartered accountant.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
